Agencies Address HMDA Threshold Changes

If you’ve been thrust into HMDA coverage due to the U.S. District Court opinion issued back in September which lowered the closed-end threshold from 100 to 25 (i.e., the two-year lookback), you may be interested to know that we have now heard from all the FFIEC regulatory agencies on these changes as well.

On January 31st, the Federal Reserve issued CA 23-1, which largely echoed the message previously given by the CFPB in acknowledging that it may take time for impacted institutions to get policies, procedures, systems and operations in place. The Federal Reserve clarified that it is not looking to cite HMDA violations or take enforcement actions for not collecting/reporting data for 2020, 2021, or 2022.

The FDIC’s FIL-06-2023 closely mirrors the messages of the CFPB and Federal Reserve for institutions impacted by the change. The FIL states that the FDIC …does not intend to initiate enforcement actions or cite HMDA violations for certain failures to report such loan data…for 2020, 2021, or 2022 reporting years. It also acknowledges that institutions “may” need some time to get the necessary processes and systems in place. The FDIC also specifically notes that, …it does not expect those institutions to collect and report data retroactively…and institutions should …start collecting data in 2023 and reporting data in 2024.

For OCC institutions impacted by the change, OCC Bulletin 2023-5 again has much the same message. It clarifies that the OCC does not intend to penalize impacted institutions for the failure to report HMDA data for closed-end transactions in 2020, 2021, or 2022. The Bulletin further acknowledged too that necessary changes to comply “may” take time and the collection and submission of 2023 HMDA data will give institutions the …opportunity to identify gaps in and make improvements to their HMDA compliance management systems.

The NCUA also echoed this approach in 23-RA-01, noting that HMDA compliance for impacted institutions may take time and that it intends to take a “flexible” approach. The NCUA will not initiate enforcement actions or cite HMDA violations for failures to report closed-end mortgage loan data collected in 2022, 2021, or 2020.

HMDA Resources!

Published
2023/02/03
Amy Kudlacek

Amy Kudlacek

Amy brings many years of banking and compliance experience to Banker’s Compliance Consulting. She has worked for both large and small financial institutions and spent time working in every area of a bank. She started out as a teller in college and eventually became a branch manager. Her love, however, was always compliance. Amy began her career with Banker’s Compliance Consulting in 2000. Her knowledge and experiences have allowed her to develop a well-rounded and practical approach to regulatory compliance. Amy is CRCM certified, has a Bachelors Degree in Business Administration and is a graduate of the ABA Compliance School. Amy & her husband have two children at home and stay busy following their activities. They spend a lot of time in the bleachers!

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